Blockchain just made its way into Cambodia.
In fact, rice farmers there are using it in hopes of getting better prices for their grain.
Blockchain for Livelihoods from Organic Cambodian Rice (Blocrice)
Blocrice is kicking off its program with 50 organic rice farmers. Oxfam also plans to expand the program throughout the country.
The program will help promote contract farming between farmers and buyers.
Contracts will now be digital and registered on the blockchain platform. Then, once a payment is made, the blockchain will be updated.
And it could help significantly.
At the moment, very few farmers have contracts with their buyers, which can cause a slew of monetary issues.
“We expect to bring traceability, transparency, financial literacy and best practices [to] contract farming in Cambodia,” said Kann Kunthy, managing director of Phnom Penh-based rice exporter AmruRice.
If the program is a success, Oxfam is hoping to expand the initiative to other provinces as well as to cashew nuts, maize and pepper.
Benefits of the Project
Other benefits include promoting farmers’ cooperatives and drafting contracts among exporters.
The initiative will redefine trade volume, delivery method and purchase price.
With blockchain coming aboard, farmers will have a better opportunity to bargain and “stand up for themselves” in contracts. Consequently, that could help result in better profitability.
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